A Review of Human Resource Management Environment and its Impact on Organizational Performance

The concept of the human resource management (HRM) environment is of great significance due to its substantial impact on the efficiency and effectiveness of HRM functions. The internal environment includes factors or elements that influence HRM, particularly those related to specialization and performance methods within the organization. It represents the domain where interactions and dynamics occur among various units, encompassing all aspects that surround human resources, including nature, human communities, social systems, and personal relationships. This research aims to establish a theoretical framework that enriches the subject and highlights the key elements shaping the HRM environment. The study concludes that numerous significant elements contribute to the formation of an organization's HRM environment, influencing and being influenced by HRM processes. Among the key recommendations is the necessity of enhancing and effectively utilizing the components of the HRM environment to contribute positively to its development, thereby ensuring efficiency in achieving both HRM and organizational goals.